August jobless report not good for Fort Smith area

BusinessFort SmithNews on the Wire

by The City Wire staff ([email protected]) September 29, 2010 10:27 am 60 views 

And someone forgot to tell employers that the recession is over.

With the exception of Memphis-West Memphis, all Arkansas metro areas posted no reduction or gains in August unemployment. Also, all Arkansas metro areas with the exception of Memphis-West Memphis have a higher jobless rate in August than in August 2009.

The Fort Smith metro jobless rate was 7.9% in August, up from 7.8% in July and up from 7.6% in August 2009. The Memphis-West Memphis unemployment rate was 9.6% in August, down from 10% in July and down from the 10.5% in August 2009.

The biggest unemployment jump was in the Hot Springs area, with the rate moving from 7.4% in July to 7.9% in August.

According to the report from the U.S. Bureau of Labor Statistics released Wednesday (Sept. 29), the number of unemployed in the Fort Smith metro area was 10,505 in August, up 1.6% compared August 2009 and up 63.4% over the 6,427 unemployed in August 2008. January 2009 marked the beginning of a high number of unemployed in the Fort Smith metro area that peaked with 11,937 in January 2010.

Total nonfarm payroll in August was 115,500, up from the 114,500 in June, and down 0.68% compared to August 2009.

Civilian labor force levels in the Fort Smith metro area decreased 0.44% to 132,900 in August compared to July. The August labor force is 2% lower than the 135,668 in August 2009, which could indicate that people are moving out of the area to find work elsewhere, are no longer looking for work or have exhausted their time in the unemployment system.

Fort Smith’s manufacturing sector employed an estimated 21,500 in August, unchanged from revised employment in July and June. The sector employed 21,600 in August 2009. The manufacturing sector has trended upward since January when the job count was 21,300. Employment in the sector is down 29.96% from a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 23,500 in August compared to 23,400 in July. The sector employed 23,900 in August 2009.

Arkansas’ August unemployment rate was 7.5%, up from 7.4% in July and unchanged from August 2009. The Oklahoma rate during August was 7%, up from 6.9% in July and 6.9% in August 2009. The U.S. unemployment rate in August was 9.6%, up from 9.5% in July but an improvement from the 9.7% in August 2009.

Unemployment rates were lower in August than a year earlier in 182 of the 372 metro areas, higher in 169 areas, and unchanged in 21 areas, noted the BLS report. Twelve areas recorded jobless rates of at least 15%, while 9 areas registered rates below 5%.

On Sept. 20, the National Bureau of Economic Research, the official marker of U.S. economic cycles, said June 2009 technically marked the end of a recession that began in December 2007.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
August 2010: 6.5%
August 2009: 5.8%
July 2010: 6.4%

Fort Smith
August 2010: 7.9%
August 2009: 7.6%
July 2010: 7.8%

Hot Springs
August 2010: 7.9%
August 2009: 6.8%
July 2010: 7.4%

Jonesboro
August 2010: 7.3%
August 2009: 6.8%
July 2010: 7.3%

Little Rock-North Little Rock-Conway
August 2010: 7.1%
August 2009: 6.2%
July 2010: 7.1%

Memphis-West Memphis
August 2010: 9.6%
August 2009: 10.5%
July 2010: 10%

Pine Bluff
August 2010: 9.7%
August 2009: 9.2%
July 2010: 9.7%

Texarkana
August 2010: 7.8%
August 2009: 6.6%
July 2010: 7.8%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%